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Top 10 U.S. cities for new grads

A fresh group of college graduates eagerly seek to begin a new phase in life — trading student status for professional titles. The National Center for Education Statistics projects more than 1.6 million students will graduate with bachelor’s degrees in the Class of 2014. Setting their sights on jobs across the country, recent grads must weigh whether to stay in their current college town versus moving to a new city to begin planting roots. In a still-recovering economy, where the job market remains uncertain and the repayment of student loans is a daunting reality for many recent grads, the ideal place for many may be wherever that first job is landed. Nonetheless, some cities are more promising than others, providing college grads exceptional opportunities for growing careers and affordable housing. Homes.com teamed up with sister site, ForRentUniversity.com, to make a list of the 10 most favorable cities for new college graduates. The best cities to live, work and play were all chosen based on mean entry-level income, average price of a one-bedroom apartment, proximity to postgraduate institutions, and social opportunities. The list also analyzes unemployment rates and the percentage of the population identified as millennials (ages 25 to 34). These are the 10 best cities for new grads:

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10. Washington, D.C.

Mean entry-level income: $46,000

Median price for a one-bedroom apartment: $1,600

Unemployment rate: 5.1%

Nearby colleges/universities: 6

Holding the second-lowest unemployment rates and boasting one of the highest entry-level salaries on the list, the nation’s capital is of strong appeal to new young professionals. While the federal government is the city’s top employer, there are an abundance of promising career prospects in technology, international business and hospitality. From vivacious night life and world-class dining to world-renowned museums and cultural attractions, there are endless forms of entertainment options for 20-somethings.

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9. Boston

Mean entry-level income: $46,000

Median price for a one-bedroom apartment: $1,590

Unemployment rate: 5.9%

Nearby colleges/universities: 21

Boston is a vibrant city full of activities and things to explore. It boasts one of the largest populations of 18- to 24-year-olds, making it an excellent choice for new college graduates. Whether spending the day taking in Boston’s prominent museums and parks or unwinding for the evening at one of the city’s exclusive rooftop lounges or underground clubs, there is always something for everyone. Although Boston’s average rent is nearly double that of other cities on this list, it does tie for the highest average entry-level income.

Reuters

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8. Seattle

Mean entry-level income: $39,000

Median price for a one-bedroom apartment: $1,300

Unemployment rate: 6.0%

Nearby colleges/universities: 10

College graduates are flocking to Seattle in favor of the enticing combination of work and social possibilities. Home to prominent corporate headquarters — including Starbucks,
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Nordstrom,
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Microsoft
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and Amazon.com
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— Seattle has many entry-level job opportunities. This coastal seaport city prides itself on its efforts to provide residents with a clean and green environment. At left, people march down Jackson Street during Seattle's 14th annual May Day march for workers and immigrant rights, May 1, 2014.

Reuters

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7. Denver

Mean entry-level income: $35,000

Median price for a one-bedroom apartment: $970

Unemployment rate: 6.5%

Nearby colleges/universities: 9

Denver’s moderate unemployment rate makes it easier to find a job there than in most metro areas. Basketball, baseball, football, soccer, lacrosse, hockey, rugby — Denver’s got it all when it comes to professional sports teams. The city also houses the most bars per capita, as well as an energetic and affordable social scene. At left, people gather for the 4/20 marijuana holiday in Civic Center Park in downtown Denver last year.

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6. Raleigh, N.C.

Mean entry-level income: $35,000

Median price for a one-bedroom apartment: $800

Unemployment rate: 6.2%

Nearby colleges/universities: 10

Raleigh prides itself on having a small town feel, which can be alluring to many new college grads trying to escape the city. As the location of three universities, Raleigh’s cost of living is one of the lowest on the list. Raleigh also has social, sports, cultural and arts scenes, good career opportunities and mild year-round climate. At left, Raleigh’s annual artSPARK street painting festival.

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5. Minneapolis/St. Paul

Mean entry-level income: $32,000

Median price for a one-bedroom apartment: $900

Unemployment rate: 5.0%

Nearby colleges/universities: 10

With more than 50% of homes in Minneapolis listed as rentals and roughly 5% of them currently unoccupied, finding a place is relatively easy. A city with a dynamic music scene, a physically fit mantra, professional sports teams and a vibrant art, theater and literary culture, Minneapolis is worth a second look for college grads. More than 82,000 Minneapolis residents are between the ages of 25 and 34. Home to large company headquarters, including PepsiCo,
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Target
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and General Mills,
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Minneapolis offers a variety of job opportunities for young career seekers. At left, the Weisman Art Museum in Minneapolis, on the University of Minnesota campus, was designed by architect Frank Gehry.

Shutterstock

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4. St. Louis

Mean entry-level income: $38,000

Median price for a one-bedroom apartment: $960

Unemployment rate: 8.2%

Nearby colleges/universities: 7

St. Louis topped Forbes’ 2012 list of happiest places for postgraduates, earning accolades based on overall career happiness among those with jobs requiring less than two years of work experience as well as the average cost of living-adjusted salary in each city. Encouraging the enjoyment of public attractions of all residents, St. Louis offers free entry into the majority of the city’s art institutions, science exhibits, museums, theaters and zoos.

Reuters

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3. Houston

Mean entry-level income: $41,000

Median price for a one-bedroom apartment: $800

Unemployment rate: 5.7%

Nearby colleges/universities: 14

Houston boasts one of the highest average incomes for entry-level jobs and is home to 24 Fortune 500 companies. Coupled with a relatively low cost of living, commuter-friendly transportation and a promising job market, Houston is ideal for young people looking to launch their careers. At left, an escape module is displayed at the Offshore Technology Conference in Houston in May. The conference showcases equipment servicing the oil industry.

KENNY TONG/Shutterstock.com

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2. Dallas

Mean entry-level income: $38,000

Median price for a one-bedroom apartment: $900

Unemployment rate: 5.8%

Nearby colleges/universities:17

Well above the national average, Dallas’ 8.67% rental vacancy rate results in notably affordable rent in relation to most comparable metros. With more money for leisure opportunities, renters can enjoy the many attractions and activities Dallas has to offer. Home to five professional sports teams, one for every major American team sport, Dallas offers an abundance of athletic events, entertainment and professional options to residents.

Reuters

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1. Atlanta

Mean entry-level income: $43,000

Median price for a one-bedroom apartment: $800

Unemployment rate: 6.9%

Nearby colleges/universities: 19

Average salary for recent college grads in Atlanta is 21% higher than the national average. Tied with Raleigh and Houston for the lowest average rent, this city is extremely friendly to recent grads with minimal savings. The city is also home to a number of postsecondary educational institutions including Clark Atlanta University and Georgia Institute of Technology, among others. According to Busy Travelers, Atlanta holds the country’s third largest concentration of Fortune 500 companies and is the global headquarters of corporations including The Coca-Cola Co.,
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Home Depot
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Delta Air Lines
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and UPS
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